Republic of the Philippines

Department of Education

School of Our Lady of La Salette, Inc.

Region III

526 Mountain View Subdivision,

Muzon, City of San Jose del Monte

THE EXPANDING OF BUSINESS AWARENESS TO IMPROVE THE SALES OF

KOWLOON HOUSE MUZON BRANCH

A research paper in Business Marketing

School of Our Lady of La Salette, Inc.

City of San Jose del Monte, Bulacan

Romadine Anne A. Magpayo

Althea D.C. Estrada

Ms. Kristine Ann Corpuz

Business Marketing Subject Teacher

I. Executive Summary

People nowadays tend to find something unique, affordable and worthy of their
money. As years go by, the trends are also having changes that makes an individual seek
for something more than the usual. Kowloon House is a restaurant that offers Chinese
and cantonese cuisines. Few months ago, they also released their very own Boba Milk
Tea in order to satisfy the market trends.

This research aims to help the Kowloon House Muzon Branch. The researchers
chose this business because of its need. This trade is truly a popular one when it comes to
the other cities especially Manila yet the residents and people here in Brgy. Muzon are
still unfamiliar that this kind of business is existing here in our place. Through this
research, we will be able to help the business improve their awareness to other people
that’ll result to increase of their income or sales. Kowloon House isn’t the only thing that
would gain advantages but also the people in terms of searching for foods that has cheap
prices yet truly delicious.

In this paper, the backgroud of the business is known and elaborated.

Macroenvironmental, microenvironmetal, and SWOT analysis are performed and
observed as we go through this study.

At the end of this research, the objectives of the researches as well as the
company should be met and gained in a time framework form December up to March.

II. Study Background

A. Brief History of the Company

During the 60’s, Kowloon House Inc. started its operations as a small noodle and
dimsum eatery in a garage in Mabini St. Ermita Manila. Eventually, the business
became very successful that the owners decide to increase their product line to
include other Chinese short orders and viand. They hired waiters, improved their
ambiance, upgraded their restaurant, and soon became one of the finest Chinese
Restaurants of that period.
 In the late 60’s, the owner put up branches in Makati and Cubao. The West
Avenue Branch followed in the early 70’s. The Dimsum Wrap-out counter started it
operation in the mid-70’s.

In the mid 80’s dimsum franchise branches were established in Metro Manila and
nearby Provinces. Kowloon House now has a total of 105 Branches.

In the past 50 years, the company has constantly changed for the better. Kowloon
House is still growing and continuously providing sumptuous, healthy and affordable
cuisines.

However, the Kowloon House Muzon branch owner, Mr. and Mrs. John
Salvacion opened their own business on August 2018. They decided to have a franchise
since they were also once a customer of the said trade way back then.

B. Mission and Vision

Our Mission is by the year 2020, we will be available NATIONWIDE, with over
hundreds of franchise stores and noodle houses, Kowloon House is truly a TRADITION
OF GOOD TASTE.

Our Vision is to achieve our vision, we will be serving the best and great tasting
dimsum products and authentic Cantonese Cuisine, ensuring consistent PRODUCT
QUALITY, giving optimum CUSTOMER SERVICE and CLEANLINESS at all times.

C. Product/Service Offerings

The Kowloon House offers different Chinese/Cantonese cuisines such as:

SIOPAO PRICE SIOMAI PRICE BEVERAGES PRICE

Pork Asado Pao 65.00 Classic Pork 60.00 Instant Coffee 20.00
(2pcs) Sioami (3pcs)
Bola Bola Pao 65.00 Classic Beef 60.00 Hot Chocolate 25.00
(2pcs) Siomai (3pcs)
Sausage Pao (2pcs) 65.00 Classic 60.00 Chocolate Milk 30.00
Sharksfin Drink
Siomai (3pcs)
 Jumbo Pao (1pc) 65.00 Classic Chicken 60.00 Black/Pandan 35.00
Siomai (3pcs) Gulaman

Chicken Asado 65.00 Mini Pork 35.00 Bottled Water 20.00

Jumbo Pao (1pc) Siomai (4pcs)
Chicken Bola 65.00 Mini Sharksfin 35.00 Soda in Can 25.00/35.00
Jumbo Pao (1pc) Siomai (4pcs)
Mongo Pao (1pc) 40.00 Mini Beef 35.00 Soda in Pet Bottle 20.00/40.00
Siomai (4pcs)
Bottled Juice 45.00
Tropicana
Bottled Iced Tea 30.00/35.00
Lipton
Soda in 1.5L 70.00

Table 1. Food Menu

MILKTEA SERIES MEDIUM LARGE 1 LITER

Classic Milk Tea 65.00 75.00 85.00
Wintermelon Milk 75.00 85.00 95.00
Tea
Caramel Milk Tea 70.00 80.00 90.00
Brown Sugar Milk 75.00 85.00 95.00
Tea
Chocolate Milk Tea 90.00 100.00 110.00
Dark Chocolate 90.00 100.00 110.00
Milk Tea
Honey Dew Milk 90.00 100.00 110.00
Tea
Taro Milk Tea 90.00 100.00 110.00
Matcha Milk Tea 95.00 105.00 115.00
Coffee Milk Tea 95.00 105.00 115.00

SMOOTHIE MEDIUM LARGE 1 LITER

 SERIES
Honey Dew 90.00 100.00 110.00
Smoothie
Taro Smoothie 90.00 100.00 110.00
Chocolate 90.00 100.00 110.00
Smoothie
Dark Chocolate 90.00 100.00 110.00
Smoothie
Matcha Smoothie 100.00 110.00 120.00
Coffee Smoothie 100.00 110.00 120.00

DRAGON BLACK MEDIUM LARGE 1 LITER

SUGAR SERIES

Black Dragon 105.00 115.00 150.00

Red Dragon 100.00 110.00 140.00
White Dragon 110.00 120.00 160.00
EXTRAS PRICE
Pearls 15.00
Brown Sugar Jelly 20.00
Coconut Jelly 20.00
Cream Cheese 25.00
Egg Pudding 20.00

III. Macroenvironmental Analysis

A. Economic

The economic changes affect the business including its interest rates, wage rates,
and etc. The business will be more encouraged to expand and take risks when economic
conditions are right, e.g. low interest rates and rising demand. The 2018 inflation rate was
2.44%. The current inflation rate (2018-2019) is now 1.75%. The Philippines inflation
rate is projected to trend around 3.30 percent in 2020, according to our econometric
models.
B. Politicolegal

There is no obvious and direct political instability to project the political government
but the closest one is the TRAIN Law or the Tax Reform for Acceleration and Inclusion
Law. Since the tax is the significant cost in business, properly managing and controlling
inherent tax risks is a must. And to keep up with tax developments and have a clearer
understanding, top businessmen seek professional tax advice to assist them manage tax
risk, control costs, and seize tax planning opportunities. This may not affect Kowloon
House without deviation, the fact cannot be taken that it is one of the factors that should
be considered by the business.

C. Sociocultural

Historically speaking, the Philippines’ relations with China have long been
established dating back to the days even before the Spaniards came to conquer the
country. Chinese merchants traded their products to the local merchants of the
archipelago. Some of them even had the opportunity to establish temporary, as well as
permanent, residence. Their stay in the country influenced the tradition cuisines of the
locals. This is clearly evident on how Filipinos are fond of eating Chinese food, including
the famous dimsum. Examples of these are pansit, siopao, kikiam, hopia, lumpia, and
siomai.

Meaning to say, even though the products of Kowloon House are Chinese
dimsum, the customers are still patronizing it. According to the owner of the franchise,
adjustments of the real taste, savour and relish of the foods are makes an individual be a
customer of the said business.

D. Demographic

Kowlooon House is a food business which offers Chinese cuisines. Therefore,

there are no age and gender limitations regarding to the customers. As we interviewed the
owner, he said that upon opening his own business, he observed that most of his
customers are aged from 40 – 50’s who are professionals such as government employees.
 Now, little by little, their customers aren’t only the adults but also the teenagers.
In this case, their target is changing and adjusting from the generation nowadays.

E. Technological

Since Kowloon House is an industry for foods specifically Chinese dimsum, there
are different machines and equipment used to favourably affect the said business. This
include the shop's own POS or point of sale which the order slips are entered, fructose
machine for the milk tea syrups, bamboo steamer which gives an cultural essence in
steaming siopao and siomai, blender, refrigerator, stove, sealer and air conditioner not
only for the tranquility of the place but especially for the need of the Boba tea (the
franchise is required to have air conditioners because of some matter). In addition to that,
the store also has three televisions which display their menu. With these stuffs, their
business adopts different advantages such as having an innovative type of serving their
products and to persuade other potential customers.

F. Natural

City of San Jose Del Monte, Bulacan is fortunately not a flood prone area.
Therefore, it doesn't affect the business directly. However, pollution, global warming and
other irrepressible natural forces may not have a great impact on the trade yet we can't
deny the fact that there is portion or percentage of customers that consider these
instances.

The biggest factor that affects the business as well as the customers is the traffic.
Because of this, the people are enervated to go to the place. However, in terms of heavy
rains and pollution, although it affects the business, Mr. Salvacion said that some of their
loyal customers are really exerting their efforts just to visit and order foods despite of
these uncontrollable circumstances.

IV. Opportunities and Threats

1. Each and every business has its own opportunities to make and threats to
surpass. By identifying these matters, it would prepare the business for the
future. In view of a fact that Kowloon House is focused on Chinese dimsum,
the following are the opportunities they may have:
 2. Since the owner of Kowloon House in Muzon branch has a son which is a
network engineer, it gives them the opportunity to build and have more
franchises of Kowloon House in different places near Brgy. Muzon.
3. Kowloon House has two employees only and the space of the place is just
enough for multiple customers. Meaning to say, they could save money from
having small numbers of employees and lesser expenses for the reasons
written above.

4. In this generation, people especially the teenagers want not only good
products and services but also instagrammable place. Kowloon House has a
perfect spot for an aesthetic feed which gives them the opportunities to
persuade potential customers.

Meanwhile, the counterparts of these opportunities are the instabilities; and these
are the following:

1. Mr. Salvacion stated that the biggest threat to their business is their
competitiors.

2. Kowloon House is open from 8:00 AM up to 12:00 MN. However, they

do not have any security guards to assure the safety of their business as
well as their customers. This factor is not a big dilemma yet it should be
solved before something depraved happens.

V. Microenvironmental Analysis
A. The Company

Since Kowloon House Muzon branch is just a franchise, it only contains a

small hierarchy which is: Mr. John Salvacion as the owner and manager, his wife
Helen Salvacion as the executive manager who helps him govern and supervise
the business and their two employees - which works as a cashier as well as serves
the orders of the customers – Maribel Canales and Maymay Fransisco.
 This business with a small organizational chart values the etiquette of the
business name and works efficiently and effectively together in order to achieve
their organizational and business goals.

B. Suppliers

Given that Kowloon House Muzon branch is just a franchise, they are
required to get the supplies only on the main branch which registered in the trade
name of Katipunan Services Inc. located at #16 West Avenue Quezon City. This
order is restrained in the contract they have signed upon franchising the business.

As a trade, supplies and the suppliers are highly important. Without these, the
business itself couldn’t run and serve their supposed products. And without the
products, there would be no business or Kowloon House at all.

C. Marketing Intermediaries

Kowloon House is a small restaurant that serves authentic Cantonese dishes

which caters for both Chinese and Filipinos diners. By that way, it doesn’t have any
resellers, distributors, wholesalers, and retailers. This business serves their customers
and consumers directly and personally over the counter.

D. Customers
In this part, the customers' behaviour is explained and understood using the questionnaire below.

School of Our Lady of

La Salette,
Inc. in cooperation with
Kowloon House, Brgy. Muzon, City of San
Jose del Monte, Bulacan
SURVEY

Put a check on your selected answer.

1. The menu has a good variety of items.
Agree Somewhat Agree Disagree
2. The products are affordable.
Yes Somewhat affordable No
3. How often do you dine at our restaurant?
Always Seldom Just now
4. Would you eat here again?
Yes Maybe No
5. Please rate the overall performance of the restaurant
from
1 – 10.
Answer: ______
Appendix 1: Survey Form

We, the researchers, conducted a survey to 10 customers of Kowloon

House

from 9:00 AM to 1:00 PM on December 8. After gathering the data, we found out
the answers and results of our survey.

In questions number 1 and 2, 10/10 agrees that the menu of Kowloon

House has a good variety and 100% of the respondents said that the prices of the
products are cheap and affordable. In question number 3, it resulted that 20% of
the respondents are a regular customer of the said business, 60% are customers
who seldom or frequently visit Kowloon House and 2 out of 10 of the respondents
had their very first visit to the business that time. In question number 4, 10/10 of
the customers assures that they will come back to Kowloon House. Last but not
the least is the rate of the overall performance of the business. After computing
the gathered data, we came up to a result of out of 100%, Kowloon House is rated
86% by the 10 respondents.
 After observing for a day, we listed the different best sellers in each
category of their products. Jumbo pao, asado and bola bola are their best sellers in
siopao. In their noodles, wanton mami and beef mami are most likely to order by
their customers. In addition to that is their special sharksfin. Lastly, the best seller
for their milk tea products is wintermelon and dark chocolate.

As of now, after their almost 2 years of service, the business is still having
an excellent and positive impact to their customers which is a good feedback to
their business.

E. Competition

Given the fact the Kowloon House has its own name and the business in
Muzon branch is just a franchise, ever since the main branch of Kowloon opened,
it has its one of the greatest competition which is Chowking. Meanwhile, this is
not only the direct competitor of Kowloon House but also other Chinese cuisines
which offer same products.

City of San Jose del Monte is called the rising city which means that many
establishments and businesses are spurting out. In Brgy. Muzon which Kowloon
House is located, there are many food chains or food hubs such as Jollibee and
McDonalds. To add, Café Tribu and OG Café are also present inside the
parameters.

Lately, milk tea became popular not only on the teenagers but also to the
adults and elders. Kowloon House introduced their Boba Milktea on October
2019. But before it’s opening, Pick A Tea, Blossom Milk Tea and I Love Milk
Tea are already running their own businesses.

Although the said businesses do not offer Chinese cuisines or exact

products same to Kowloon House’s, we can’t deny the fact that these trades do
have a factor that affects the choices of the customers.

F. Publics
 Kowloon House has its own social media account. They have a Facebook
page managed by Mr. Salvacion and his son who’s still studying as an
information technologist at Bulacan State University Sarmiento Campus. Through
this, they were able to post pictures not only of their products but also the photos
of their customers. Also, customers rate the business by giving stars in the
Kowloon House’s page. In addition to that, feedbacks are also seen on the
comment section of their posts.

VI. Strengths and Weaknesses

Businesses’ opportunities and threats are important to be identified in

order to be prepared for future phenomena. Meanwhile, this preparation would
not be fulfilled without these two factors; the strengths and weaknesses.

The list below is the things that are considered as the advantages or
strengths of Kowloon House.

1. Experience. The owner/manager of the Kowloon worked for different

restaurants such as Sambokojin Yakiniki Smokeless Grill, Dads Saisaki
Kamayan and Triple B Folk Bar. Therefore, the experiences he gained from
his past jobs are probably helping him to manage his own business.
2. The business name itself. Since Kowloon House Muzon branch is just a
franchise, it means that before it was established, there are many people who
already know their products. Through this, after they opened their franchise,
their cuisines are already tested by many people and they already have the
assurance that Kowloon House will be patronized by multiple customers.

3. Communication. One of the strategies of the owner is having a good

communication skill. As much as possible, every time they have a customer,
having a small chit-chat while waiting for their order will be a help. By this
way, the customers won’t mind the time while they’re waiting.
 4. Behaviour. Not only the foods or products but also having a good quality of
service and an excellent behaviour inside and outside the business makes the
customer go back again and again in Kowloon House. This factor makes
several regular customers that are a great help in increasing the sales of the
business.

5. The place. The Kowloon House has a nice ambiance which gives an impact to
the customers. It has an instagrammable lights and background which are very
popular in our generation nowadays and etc.

Businesses’ normally have different weaknesses. What matters most is

that these factors shouldn’t be taken as a problem. Instead, the management
should see these weaknesses as an opportunity to have a better business. The
following are the weaknesses of Kowloon House:

1. Location. The place where Kowloon is established is beside the main road
yet it is not placed on an eye-catching location. This factor makes the
business hidden and not very well known by the residents of Brgy. Muzon.

2. Shortage of stocks and supplies which make the sales and income lesser.

VII. The Market

A. Market Size

Kowloon House is located beside the high-way and almost 2 kilometers away
from Muzon National High School. Therefore, most of their customers are passerby,
students, teachers, teenagers and etc. Each day, an average of 80 – 150 customers are
present on their store. On December 6, their sales is about 7,000 PhP while on December
8, their sales increased to 11,500 PhP. However, 4,000 PhP is their lowest income in a
day. Meaning to say, the number of their customers affect the sales of the business.

B. Market Needs

Since Kowloon House is not that popular in some people, they must provide
something that makes the customer know more about their products such as liplets that
contains the lists of their products, tarpaulins that makes their branch more visible to the
passersby, social media platforms like instagram and twitter to post their products and
lastly, their decorations to captivate the attention of every individuals and also to make
their place more presentable.

C. Market Trends

Due to the popularity of milk tea, the owner of the Kowloon House started to
introduce their very own Boba Milk Tea. By this sense, the market trends are met to
satisfy the needs of their customers. Also, meeting the standards of the society and
market trends would be a great help in the business. Through this, people would possibly
patronize that specific product not just because of its quality but also because it is popular
or trending.

VIII. Marketing Objectives

Since one of the weaknesses of Kowloon House is their popularity to the residents
inside the Brgy. Muzon community, the main objective of this marketing research is to
increase the business awareness to improve and have an increase of sales up to 20% -
30% by March 2020.